Mr Cameron said increased unemployment was “hugely unwelcome” and a “tragedy” for those affected. But he pointed to a range of successful schemes to help people.

“There is not an ounce of complacency,” he said. “We will do everything we can.”

The Office for National Statistics report included an 18,000 rise over the three months to November to 29.12 million people in jobs, though Mr Cameron admitted growth needed to be “further and faster”. There was also a small fall, of 10,000 to 857,000, in the numbers unemployed for more than a year.

The defining characteristic of this Government is it does nothing as thousands of people find themselves unemployed.

Ed Miliband

More students and women are seeking work. The number of unemployed 16 to 24-year-olds surged 52,000 over the quarter to 1.04 million – 22.3 per cent of the age group and the highest since records began in 1992. Employment Minister Chris Grayling said: “Finding work for the unemployed will remain top of the Government’s agenda.”

Mr Miliband said unemployment was forecast to keep rising and declared: “The defining characteristic of this Government is it does nothing as thousands of people find themselves unemployed.”

Banking giant Lloyds added to the gloom by detailing 700 job losses across the UK – part of 15,000 already announced.

TUC research showed 30 people chased every job vacancy in Lewisham, southeast London, and more than 20 were competing elsewhere.

TUC chief Brendan Barber said: “We are in the midst of a full-blown jobs crisis.”

John Philpott, of the Chartered Institute of Personnel and Development, described the jobs market as “in a very sorry state”.